The special Non-Fungible Token or NFT category has been defined as the ecosystem of incredible innovators. The LKSCOIN project in wanting to issue new NFTs for Copyright is no exception.
Looking at the application possibilities of blockchain technology beyond the conventional financial sector, NFTs also include collectables, gaming items, digital art, event tickets, digital identity, domain names and even property registration for physical assets.
But how did the NFT category come into being and how did it develop?
CryptoKitties: the mainstream of NFT collectables
One of the first successful NFT projects in the crypto world was the game developed on Ethereum’s blockchain, CryptoKitties, which allows players to collect, breed and exchange virtual cats.
No financial or economic transaction, the blockchain was only used for gaming and entertainment, creating a CryptoKitty (represented by a Non-Fungible Token) by combining different properties such as age, breed or colour.
As a result, each CryptoKitty created is unique, not interchangeable with another CryptoKitty and, above all, indivisible, i.e. there is no way to divide a CryptoKitty token into divisible parts.
The innovative application of the blockchain, which did not create coins but simple virtual cats, has caused the entire web to unleash a huge amount of appreciation, to the point of moving millions of dollars.
Development of blockchain-based NFTs and their value in various sectors
Thanks to their features, the blockchain-based NFT standard has seen its development and expansion over the years, gaining ever more value on the market.
There are, in fact, several frameworks for the creation and issuance of NFTs. The most famous, as well as the one chosen by LKSCOIN for its token dedicated to copyright protection, is the ERC-721 standard, which uses the Ethereum blockchain for both the issuance and trading of NFT.
Not only that, just like all other blockchain-based tokens, NFTs also exists on an address, so it is possible to store them in a wallet or trade them on open markets.
And the moment an asset has the right qualities to enter the market, the encounter between supply and demand, sellers and buyers, creates value.
Essentially, every NFT will have its intrinsic characteristics of uniqueness but its value will be assigned by the choices of the people who decide how valuable it is.
What are the applications favouring NFTs?
The NFT category preferred by incredible innovators comes wherever cryptocurrencies, stablecoins or fungible tokens in general, can’t deliver.
As of today, NFTs are already being used by decentralized applications or dApps to issue unique digital objects and crypto collectables.
Not only that, besides the gaming sector, NFTs are also famous for tokenizing assets in the real world.
Works of art, real estate, stamps, rare collectables and other things are just a few examples of real objects that are digitized with NFTs. In practice, these NFTs can represent fractions of physical assets that can be stored and exchanged as tokens on a blockchain.
Another important area of application for NFTs is also Digital Identity, with several use cases such as the storage of identification data, properties and therefore also copyright on the blockchain.
The LKS Foundation, thanks to this remarkable tool, is ready to realize its mission of copyright protection of digital content published and shared on social networks.
The possibility of linking digital content, content ownership and the identity of its author to a single NFT would solve the problems related to fake news and encourage a clearer responsibility of digital content creators.
Not only that, the immediacy of storing NFTs in a wallet or their free trading on the open market would also allow digital content to gain value according to the laws of the market.